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Technology Stocks : Compaq
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To: Elwood P. Dowd who wrote (48478)2/16/1999 11:20:00 PM
From: Night Writer  Read Replies (1) of 97611
 
El,
Dell also has lost some of the advantage of its direct-sales model
as PC-component prices have firmed up. That is because Dell's
direct-sales model allows it to quickly take advantage of falling
component prices and pass them onto its customers. But now
that prices have firmed, Dell -- like all of the computer makers --
must still hold its prices down to make sales, Mr. Poyner said

This combined with a lack of high end products and services to leverage corporate sales puts Dell in a tough market position. The screw driver shop may be in for some hard times trying to play with the big boys. Have you noticed the mention of IBM and Compaq in the same breath when talking about Dell's competitors? Maybe we are getting there a little faster then we think.
NW
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